How to avoid or manage financial stress

Jermaine Jackson June 8, 2022

How to avoid or manage financial stress

Stress is a common term, defining a positive (eustress) or negative (distress) emotional state of well-being. There are two main types of distress: acute, considered short-term; and chronic, lasting a longer period of time.

Distress also has been labeled as a silent killer, describing the grave effect it can have on your body, causing illness or possible life-threatening consequences. Although multiple factors can create stress in one’s life, we will focus on one in particular: financial stress.

Financial stress can be described as a state of worry, anxiety or emotional tension related to money, debt and current or future expenses. A survey conducted by CreditWise discovered that 73 percent of Americans (all ages) rank finances as the most significant source of stress. Additionally, finances rank much higher among Millennials and Gen Z respondents, totaling 81 percent and 82 percent respectively, expressing that financial stress is more apparent in the younger generation. This is possibly related to student loan debt and a lower accumulation of savings.

Many Americans have encountered an increase of financial stress post-COVID-19. Job loss, inflation and other economic factors have contributed to financial uncertainty. As of March 2022, the inflation rate has reached 8.5 percent, the highest rate since December 1981, a period of recession.

Whether you have lived through a recession or are unaccustomed to financial uncertainty, as have older generations, dealing with financial stress is never easy and a matter that should not be taken lightly. Here are some helpful ways to minimize financial stress:

List current challenges and set specific and incremental goals. Listing each on paper, approaching one goal at a time can reduce mental pressure.
Create a budget, regularly monitoring your spending. The goal is to reset your spending to create some financial flexibility. For more information, review April’s Stewardship article, “Budgeting Basics.”
Focus on what you can control and release those things over which you have no control.
Utilize automatic payment solutions to reduce the amount of time you spend on managing your finances.
Seek professional assistance from a financial advisor. Receiving professional advice can provide solutions to exacerbated challenges.
Find free/low-cost stress-relieving activities. This can include helpful hobbies or interests (reading, artistry, exercising, etc.). According to the American Psychological Association, 67 percent of Millennials surf the internet and 58 percent watch two or more hours of TV/movies as a way of coping with stress, which is considered unhelpful.
Prayer. Take everything to God in prayer. Matthew 11:28 (NLT) declares, “Come to Me, all of you who are weary and carry heavy burdens, and I will give you rest.” 1 Peter 5:7 states, “Give all your worries and cares to God for He cares about you.”

Any form of distress is an unhealthy emotion that should be cared for appropriately. When left untreated, distress can only become more problematic. Take control of the matters that can be controlled. However, remember that God is always available, promising to be an ever-present help in trouble (Psalm 46:1).

Jermaine K. Jackson is Lake Union Conference associate treasurer and Stewardship director.